Wednesday, March 19, 2014

The most expensive program that we have

Still, this growth in the economy and Louisiana job market isn't
reflected in the state's revenue. This year, Louisiana is only expected
to see income tax collection growth around two percent. Corporate tax
collection is supposed to decline by nearly 17 percent, according to the Legislative Fiscal Office.

Of course the "Hollywood South" tax credits are the ones that get all media attention given that they're.. you know.. movies plus all the people who go to jail and stuff. But surely they aren't that expensive just by themselves, right?

Still, Moret also acknowledges that tax breaks and credits are being
used more often than in previous years. "When you look at the
utilization of tax exemptions, it has been on an unprecedented growth
curve," he said.

Louisiana Economic Development administers and advocates for some of
state's most high-profile tax breaks for businesses, but Moret said the
agency is responsible for a relatively small amount of the state's total
tax incentives.

He did acknowledge that Louisiana's film tax credit program costs state government money.
"From a fiscal perspective, it is by far the most expensive program
that we have," said Moret of the state's financial incentive for the
film industry, which has brought several movie productions to Louisiana.